Fundamentals of Islamic Economic System

By Dr. Muhammad Sharif Chaudhry

MA, LLB, PhD

ISBN: 969-8487-00-X



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ISBN: 969-8487-00-X

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ACKNOWLEDGEMENTS

 

It would be most fair if I acknowledge my debt of gratitude to all those scholars and jurists – whether alive or dead – from whose works I have derived immense benefit in producing this book. I must also record my thanks to my wife and children for their indulgence in giving me time for research and writing.

 

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DEDICATION

 

This book is dedicated to ever-lasting memory of my mother and father who left for their heavenly abode on April 10, 1984 and June 23, 1998, respectively.

“…… My Lord! Have mercy on them both as they did care for me when I was little.”

--(Al-Qur’an 17:24)

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CONTENTS OF THE BOOK

1

Salient Features

2

Objectives and Principles

3

Production

4

Distribution

5

Exchange

6

Consumption

7

Land

8

Labour

9

Capital

10

Enterprise

11

Interest

12

Loan

13

Public Revenue

14

Public Expenditure

15

Social Security

16

Social Justice

17

Welfare State

18

Economy Without Interest

19

Miscellaneous Subjects

20

Islam and Other Economic Systems

Bibliography

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BRIEF INTRODUCTION OF THE BOOK

 

TThe book brings into light salient features of Islamic economic system alongwith its objectives and principles. Production, distribution, exchange, consumption, and factors of production like land, labour, capital and enterprise under Islamic dispensation have been dealt in this book. Interest, public revenue, public expenditure, social security, social justice and Islamic concept of welfare state have been brought in focus. The book also compares the Islamic economic system with socialism and capitalism. It is indeed a marvellous book which provides teachings of the Qur’an and the Sunnah on almost every subject pertaining to Islamic economic system. The book comprises 275 pages of 5.5”x8.5” size and its price is Rs. 150/-. It is available from Kitab Sarai, Al-Hamd Market, Urdu Bazar, Lahore, Pakistan.

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ABOUT THE PRINTED VERSION OF THE BOOK

 

First Edition:

July, 1999

Price:

Rs. 150/-

Printed by:

Al-Matbaat-ul-Arabia, 32, Lake Road, Lahore, Pakistan

Composed by:

Lahore Computer Designing & Composing, 6-Sohni Manzil, Al-Karim Market, Haq Street, Urdu Bazar, Lahore-54000, Pakistan

Stockist:

Lahore Book Centre, 6-Sohni Manzil, Al-Karim Market, Haq Street, Urdu Bazar, Lahore-54000, Pakistan

Published by:

Burhan Education and Welfare Trust, 198-N Samanabad, Lahore, Pakistan

 

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FOREWORD

 

In the Name of Allah, the Beneficent, the Merciful. “…… O My Lord! Relieve my mind. And ease my task for me; and loose a knot from my tongue. That they may understand what I say” –(Al-Qur’an 20:25-28).

The most dominant economic systems of the world in the present century are capitalism and socialism.  Capitalism is based on the private ownership of the means of production, distribution and exchange. In capitalistic economy, the profit motive constitutes the prime stimulus to productive exertion and the price mechanism determines what things shall be made and in what quantities and what conditions. Thus chief features of capitalism, in brief, include: existence of unrestricted economic freedom, unrestricted private ownership, profit motive, free market, competition and institution of interest. Socialism, on the contrary, believes in the public or state ownership of means of production, distribution and exchange. It suppresses economic freedom, abolishes private property and claims to achieve economic equality. Chief features of socialism, in brief, include state ownership of means of production, non-existence of private property, centrally planned economy, and establishment of totalitarian state under dictatorship of proletariat. Both capitalism and socialism are secular systems and their aim is the same i.e. the achievement of material well -being of their followers although the methods adopted by them for achieving this end are diametrically opposed. Interestingly both capitalism and socialism have failed in resolving principal economic problems of humankind. Thus the economic crisis of our age remains as deep and disturbing as ever. In this situation of despair and despondency, humanity is anxiously looking forward to a system which could deliver it from the present economic mess created by the dominant economic philosophies of the modern age. Islam perhaps offers that system.

In this book a sketch of the Islamic Economic System is being presented which has been prepared in the light of the Islamic teachings. Teachings of Islam on economic matters are widely scattered in the Holy Qur’an, books of Ahadith, and writings of classical Muslim jurists. Through in-depth study and intensive research, verses of the Qur’an, Ahadith of Prophet Muhammad (PBUH), conventions of prophet’s companions and right-guided caliphs, and views of classical jurists on economic matters have been collected, analysed and classified under various subjects. The arrangement of these subjects follows the conventional style of a textbook on economics with a view to make it communicable to the readers of modern economics. All the aspects of the economic system of Islam have been discussed in detail in the light of the Verses of the Qur’an and Traditions of Prophet Muhammad (PBUH). Translation of the Verses of the Qur’an has been taken from Marmaduke Pickthall’s renowned translation “The Meaning of the Glorious Qur’an.” Ahadith have been taken from standard translations of various Ahadith compilations particularly from Al-Hadith of Maulana Fazlul Karim.

Before concluding I must pray to Allah “O, my Lord! Increase me in knowledge” so that I may be able to do some more valuable services to Islam.

Muhammad Sharif Chaudhry

MA, LLB, PhD

January 15, 1999 A.D. (Ramadan 26, 1419 A.H.)

169-A/I Township, Lahore, Pakistan.

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